Huntington National Bank 2014 Annual Report Download - page 195

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189
Statements of Cash Flows Year Ended December 31,
(dollar amounts in thousands) 2014 2013 2012
Operating activities
N
et income $ 632,392 $ 641,282 $ 631,290
Adjustments to reconcile net income to net cash
provided by operating activities:
Equity in undistributed net income of subsidiaries (411,261) (718,144) (688,149)
Depreciation and amortization 548 513 265
Other, net 26,685 15,965 60,446
N
et cash (used for) provided by operating activities 248,364 (60,384) 3,852
Investing activities
Repayments from subsidiaries 9,250 285,792 591,923
Advances to subsidiaries (32,350) (249,050) (36,126)
Cash paid for acquisitions, net of cash received (13,452) --- ---
N
et cash (used for) provided by investing activities (36,552) 36,742 555,797
Financing activities
Proceeds from issuance of long-term borrowings --- 400,000 ---
Payment of borrowings --- (50,000) (236,885)
Dividends paid on stock (198,789) (182,476) (169,335)
N
et proceeds from issuance of common stock 2,597 --- ---
Repurchases of common stock (334,429) (124,995) (148,881)
Other, net 15,512 25,707 (1,031)
N
et cash provided by (used for) financing activities (515,109) 68,236 (556,132)
Change in cash and cash equivalents (303,297) 44,594 3,517
Cash and cash equivalents at beginning of year 966,065 921,471 917,954
Cash and cash equivalents at end of year $ 662,768 $ 966,065 $ 921,471
Supplemental disclosure:
Interest paid $ 21,321 $ 20,739 $ 28,926
23. BUSINESS COMBINATIONS
BANK OF AMERICA BRANCH ACQUISITION
On September 12, 2014, Huntington completed its acquisition and conversion of 24 Bank of America branches, furthering our
presence in Michigan. Under the terms of the agreement, Huntington acquired approximately $745.2 million of deposits. The
deposits were recorded at fair value. The fair values of deposits were estimated by discounting cash flows using interest rates
currently being offered on deposits with similar maturities (Level 3). As part of the acquisition, Huntington recorded $17.1 million of
goodwill.
Pro forma results have not been disclosed, as those amounts are not significant to the audited consolidated financial statements.
CAMCO FINANCIAL
On March 1, 2014, Huntington completed its acquisition of Camco Financial in a stock and cash transaction valued at $109.5
million. Camco Financial operated 22 banking offices and served communities in Southeast Ohio. The acquisition provides
Huntington the opportunity to enhance our presence in several areas within our existing footprint and to expand into a few new
markets.
Under the terms of the merger agreement, Camco Financial shareholders received 0.7264 shares of Huntington common stock, on
a tax-free basis, or a taxable cash payment of $6.00 for each share of Camco Financial common stock. The aggregate purchase price
was $109.5 million, including $17.8 million of cash and $91.7 million of common stock and options to purchase common stock. The
value of the 8.7 million shares issued in connection with the merger was determined based on the closing price of Huntington’s
common stock on February 28, 2014.